If You Exhibit the Endowment Effect as a Decision Maker

question 285

Multiple Choice

If you exhibit the endowment effect as a decision maker, then you are

• A)deciding on the basis of sunk costs.
• B)buying something you can't really afford because you expect to save in the future.
• C)ignoring non-monetary opportunity costs.
• D)consuming based on celebrity endorsements.

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Definitions:

Self-Concept

The collection of beliefs and perceptions individuals have about themselves, encompassing aspects like self-image and self-esteem.

Theory of Planned Behavior

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering attitudes, subjective norms, and perceived behavioral control.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes.

Scientific Process

A methodical approach to inquiry that involves the systematic observation, measurement, experimentation, formulation, testing, and modification of hypotheses.